President Bola Tinubu has increased the proposed 2025 budget to N54.2 trillion, a 9% jump from the initial N49.7 trillion proposal presented to the National Assembly in December 2024.
This increase is attributed to additional revenues generated by key government agencies, including N1.4 trillion from the Federal Inland Revenue Service (FIRS), N1.2 trillion from the Nigeria Customs Service, and N1.8 trillion from other government-owned agencies.
The Senate President, Godswill Akpabio, has referred the President’s request to the Senate Committee on Appropriations for urgent consideration, with assurances that the budget will be finalized and passed.
It has eventually been passed .
This development has sparked concerns among experts, who warn of potential dangers associated with the increased budget
Tinubu letter to National Assembly reads: “I am writing to inform you of the availability of additional revenue amounting to N4.5 trillion and to propose its allocation within the 2025 Appropriation Bill to enhance the budget’s responsiveness to the nation’s most pressing priorities and aspirations.”
This additional revenue sourced from key agencies represents a pivotal opportunity to address Nigeria’s critical challenges and advance her development agenda.‘’
This additional revenue, sourced from key agencies, represents a pivotal opportunity to address Nigeria’s critical challenges and advance her development agenda: Government-Owned Enterprises (GOES): N1,823,879,970,637; Federal Inland Revenue Service, FIRS, N1,497,600,000,000; (Federal Government’s 52% share of the increase in revenue from N22.1 trillion to N25.1 trillion_Nigerian Customs Service (NCS): N1,209,000,000,000 (Federal Government’s 52% share of the increase in revenue from N6.5 trillion to N9.0 trillion)“With this additional revenue, the 2025 Appropriation Bill’s total budget size will increase from N49.7 trillion to N54.2 trillion, demonstrating our commitment to inclusive growth and security.“
Proposed Allocation of Additional Revenue: I propose that these funds be allocated to the following transformative expenditure areas: Solid Minerals Sector-N1 trillion.
’To support economic diversification by unlocking the potential of Nigeria’s vast solid mineral resources, which remain an untapped revenue stream and a vital pillar of non-oil growth.
Recapitalization of the Bank of Industry (Bol) N500 billion To provide critical support to small and medium enterprises (SMEs), drive local manufacturing, and reduce dependence on imports“Critical Infrastructure Projects (RHID Fund) – N1.5 trillion. Allocated as follows: Irrigation Development (through River Basin Development Authorities): N380 billion.“
Transportation Infrastructure (roads and rail): N700 billion (300 billion for the construction and rehabilitation of critical roads and 400 billion for light rail network development in urban centers), Border Communities Infrastructure: N50 billion, Military Barracks Accommodation: N250 billion, and Military Aviation: N120 billion.’’